Shippers Dispatch Corporation orders office equipment from Office Outfitters, Inc, which has an unperfected security interest in the equipment until it is paid for. Meanwhile, Shippers Dispatch takes out a loan from Capital Credit, Inc, subject to a
security interest in Shippers Dispatch's building and equip-ment, which Capital perfects. Shippers Dispatch files a bankruptcy petition under Chapter 7. If the petition is granted, in what or-der will Shippers Dispatch's creditors be paid?
The order of the priority of the creditors in this problem is (1 ) Capital, which has a perfected security interest in Shippers Dispatch's building and equipment, and (2 ) Office Outfitters, which has only an unper-fected security in-terest in Shippers Dispatch's office equipment. This is because, un-der the priority es-tablished by the Bankruptcy Code, and between the creditors listed in this question, those with perfected security interests have the highest priority. In almost cases, including this one, the claims of unsecured credi-tors are paid last, if at all.
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